Addis Ababa — Over the past eight years, Ethiopia has embarked on a transformative journey, evolving from a restrictive state-led economy to a more resilient, diversified, and market-oriented model, as highlighted in a statement from the Office of the Prime Minister. Prior to 2018, economic growth was impeded by structural weaknesses such as limited job creation, narrow export diversification, and heavy reliance on external borrowing. The Agriculture Development-Led Industrialization (ADLI) framework, while expanding agricultural output, failed to fully harness Ethiopia’s agricultural potential or generate sufficient rural incomes to drive industrialization.
Manufacturing exports remained stagnant below three billion dollars, and industrial parks often operated as isolated entities with weak domestic economic ties. This model also exposed the country to macroeconomic vulnerabilities, with large infrastructure investments financed through external borrowing failing to generate adequate foreign exchange, contributing to rising debt pressures.
Since 2018, Ethiopia has implemented a comprehensive reform agenda to address these challenges, stimulate new sources of growth, and correct macroeconomic imbalances. A central pillar of this reform has been the transformation of the agricultural sector towards higher productivity, diversification, resilience, and sustainability. The country has achieved wheat self-sufficiency and by 2024/25, emerged as Africa’s largest wheat producer.
Crop diversification has accelerated, with rapid expansion in rice, oilseeds, and other industrial crops. Livestock and high-value agriculture have seen significant growth, with annual egg production reaching 9. 4 billion, milk production at approximately 13 billion litres, and meat production nearly tenfold.
These gains have improved nutrition, food systems, and diversified rural incomes.
Structural reforms, such as cluster farming, now involving 9. 5 million farmers across 12. 8 million hectares, have led to a 29 percent increase in productivity and an 18 percent rise in incomes.
Overall agricultural output has increased from 41. 7 million tons to around 150 million tons within seven years, strengthening the sector’s contribution to economic growth, employment generation, and export performance. Coffee production has doubled to nearly one million tons, generating about 2.
65 billion dollars in export earnings in 2024/25. The Green Legacy Initiative has resulted in the planting of more than 48 billion seedlings and the rehabilitation of 12. 5 million hectares of land, increasing forest coverage from 17 percent in 2019 to 23 percent in 2025, reducing soil erosion, and supporting agricultural productivity and export performance, particularly in coffee.
Industrial strategy has shifted towards integrated Special Economic Zones that support manufacturing, logistics, and services, while strengthening domestic economic linkages. The number of investors has grown from 36 in 2018 to over 200 today, with domestic investors accounting for nearly 65 percent. This transition reflects a shift from enclave-style industrialization toward a more integrated, inclusive, and sustainable ecosystem.
Export — oriented production from these zones continues to expand, broadening the country’s export base. The mining sector has emerged as a key pillar of the economy, with gold production increasing significantly to nearly 39 tons, generating approximately 3. 5 billion dollars in export earnings in 2024/25, accounting for more than 45 percent of total exports.
Coal imports have been fully replaced by domestic production, and cement production capacity now exceeds 20 million tons annually, supporting self-sufficiency.
